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Table of Contents

Appendix II. Examination Questions.

said that “credit is capital.” Is this so or

  1. Define capital, and examine the meaning of the term in the following statements:

(a.) Demand for commodities can not create capital.

(b.) Credit is not a creation, but a transfer of capital.

(c.) Wages depend upon the proportion between population and capital.

  1. State the law of the value of money which governs general prices. What change is to be made in the statement, if credit is to be taken into consideration?
  1. What is the part which instruments of credit, other than bank-notes, play in the exchange of commodities?
  1. Mention some of the principal features of a credit crisis.
  1. What
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